Hubei Xiantao: Textile Enterprises Maintain Normal Operation, Product Degradation Transformation

On August 4, China cotton net reporters continued to investigate the current situation of textile industry resumption in Hubei Province. From the situation of the enterprises visited, Hubei Province was affected by the epidemic situation and returned to work late. Due to the severe epidemic situation in foreign countries and the continuous tension between China and the United States, textile enterprises' export was limited, and enterprises sought transformation through product degradation.

A textile enterprise with 200000 spindles said that before the outbreak of the epidemic, the enterprise mainly produced combed 60s, 80s, 100s and other medium and high-end yarns. Due to the influence of epidemic factors at home and abroad, the export of medium and high-end yarns was blocked, and the orders were reduced. In addition, the consumption of domestic and foreign textile and clothing decreased, and the inventory of cotton spinning industry products increased. The person in charge of the enterprise told reporters that due to the severe foreign trade situation, the enterprise mainly produces medium and low-end yarn products to meet the domestic market demand.

According to a textile enterprise in Xiantao, Hubei Province, the current cotton yarn market is cold, affected by the early epidemic situation, enterprises are more difficult to operate, in order to reduce expenses, some enterprises have entered the semi holiday state. The person in charge of the enterprise said that since the resumption of production, the enterprise is in the process of product transformation, from the original production of yarn to the manufacture of masks.

According to the interviewed enterprises, the proportion of China's textile and garment overseas trade accounts for about 50% of the total, which means that textile enterprises can't digest such huge production capacity only relying on the domestic market. Most textile enterprises will export to domestic sales, increasing the competitive pressure of domestic cotton textile market. As the international situation is in a more severe stage and there are still uncertain factors in the future development of the global epidemic situation, domestic textile enterprises are still facing greater business pressure.